Creating peace of mind through honest and committed management. REIT Issuer Ichigo Real Estate Investment Corporation (8975) 1-1-1, Uchisaiwaicho, Chiyoda-ku, Tokyo Representative: Yoshihiro Takatsuka, Executive Director May 9, 2013 Asset Management Company Ichigo Real Estate Investment Advisors Co., Ltd. Representative: Wataru Orii, President & Representative Statutory Executive Officer Inquiries: Minoru Ishihara, Executive Vice President & Statutory Executive Officer Tel: 03-3502-4891 Acquisition of Portfolio Assets (Ichigo Akihabara North Building, Ichigo Sakaisuji Honmachi Building, and Konami Sports Club Izumi Fuchu) Ichigo Real Estate Investment Corporation ( Ichigo REIT ) has decided to acquire the following assets. 1. Acquisition Summary No. Asset Name O-47 Ichigo Akihabara North Building O-48 Ichigo Sakaisuji Honmachi Building Z-09 Konami Sports Club Izumi Fuchu Asset Type Office Office Other (Retail) Ownership Acquisition Price (Note1) Trust beneficiary rights in real estate (juekiken) Trust beneficiary rights in real estate (juekiken) Trust beneficiary rights in real estate (juekiken) 5,500,000,000 yen 1,940,000,000 yen 1,210,000,000 yen Seller Suehirocho Holdings GK Kansai Holdings GK Ginza Holdings GK Contract Date May 9, 2013 May 9, 2013 May 9, 2013 Closing Date (expected) Financing Method (Note 2) Settlement Method June 3, 2013 June 3, 2013 June 3, 2013 Proceeds from issuance of new investment units, borrowing, and cash on hand (expected) Lump-sum payment at the time of transfer (Note 1) Acquisition Price is exclusive of expenses incidental to the acquisition, such as property tax, city planning tax, and consumption tax. (Note 2) For details on the issuance of new investment units, please refer to today s release Issuance of New Investment Units and Secondary Offering of Investment Units. 1
2. Acquisition Rationale As part of Stage II of its Growth Strategy to grow its dividend for its unitholders, Ichigo REIT has sought to acquire high-quality assets via a public offering and new debt financing. The acquisition will be financed by the issuance of new investment units, bank borrowing, including from the Japanese megabanks, and cash on hand. (The details of the borrowing will be announced as soon as they become available.) To facilitate the acquisition, Ichigo Group, the sponsor of Ichigo REIT, provided Ichigo REIT with a broad range of support, including asset warehousing, financing, and the management of a bridge fund. The acquisition consists of two prime location office buildings and one retail asset all with expected stable cash flows. The acquisition thus allows Ichigo REIT to further drive economies of scale for its unitholders via cost reductions and improved borrowing terms and improve the profitability of Ichigo REIT s portfolio to further increase the dividend. It also strengthens Ichigo REIT s financial position, which could allow it to lower its LTV in the future. The assets also lower the portfolio s average building age and enhance geographic diversification. The assets have the following characteristics: (1) Ichigo Akihabara North Building (i) Location The property is located in Akihabara, where office buildings have become increasingly concentrated via large-scale redevelopment projects. Owing to central Tokyo location, Ichigo believes there is stable demand for properties in this area. (ii) Asset Characteristics The property benefits from especially convenient train and subway access, including a 1-minute walk from both Suehirocho Station on the Tokyo Metro Ginza Line and walking distance from Akihabara Station on the JR Yamanote Line, JR Keihin Tohoku Line, JR Sobu Line, Tokyo Metro Hibiya Line, and the Tsukuba Express Line. The property stands out in the market for having a large and well-configured 250 tsubo floor plate while a majority of the surrounding buildings are smaller-sized properties. In addition, the property is leased to a major Tokyo Stock Exchange-listed company with a fixed-term lease contract. (2) Ichigo Sakaisuji Honmachi Building (i) Location The property is located in the Sakaisuji Honmachi area of Osaka, which has a concentration of financial institutions and buildings owned and leased by large corporations. As a central business district, Ichigo believes there is strong demand for the properties in this area from a wide variety of tenants. 2
(ii) Asset Characteristics The property benefits from especially convenient subway access, including a 1- minute walk from Sakaisuji Honmachi Station on the Osaka Municipal Subway Chuo Line and the Sakaisuji Line, and walking distance from Honmachi Station on the Osaka Municipal Subway Midosuji Line. Each floor of this property is a large, well-configured and sub-dividable with a 120 tsubo floor plate. This property also features eco-friendly enhancements including fourteen individual air conditioning systems per floor, lighting sensors, and Low-E double-glazed glass. (3) Konami Sports Club Izumi Fuchu (i) Location The property is located in the Senboku area, which is a bedroom community serving Central Osaka. Senboku is in the Izumi Fuchu area, which has a demographically young, growing population. (ii) Asset Characteristics The property is a full-spectrum sports facility located in a retail building and a 3-minute walk from Izumi Fuchu Station on the JR Hanwa Line. The area has high growth potential owing to continuous redevelopment near the station. In addition, the tenant, Konami Sports & Life, is the largest fitness gym operator in Japan, and has a fixed, long-term contract. 3
Asset Type 3. Property Overview (1) Ichigo Akihabara North Building Asset Overview Trust beneficiary rights in real estate (juekiken) Appraiser Appraisal Overview Daiwa Real Estate Appraisal Co., Ltd. Trustee Mizuho Trust & Banking Co., Ltd. Value 5,630,000,000 yen Period of Trust Contract March 30, 2011 March 31, 2021 Date March 1, 2013 Location 6-15-12, Sotokanda, Chiyoda-ku, Tokyo Value by Direct Capitalization Method 5,680,000,000 yen Land Building Property Right Freehold Income 402,851,052 yen Size 1,134.47 sqm Obtainable Rent Income 363,027,840 yen Zoning Commercial Other Income 40,884,012 yen Coverage Ratio / Floor Area Ratio 100% / 700% (Note 4) Amount Equivalent to Loss on Vacant Space 1,060,800 yen Property Right Freehold Expenses 102,250,711 yen Zoning Office Administrative and Maintenance Expenses 28,285,066 yen Structure S/RC B1F/8F Taxes 38,375,823 yen Total Floor Area 8,289.89 sqm Other Expenses 35,589,822 yen Construction May 20, 1997, renovated on May 9, Date 2002 Net Operating Income (NOI) 300,600,341 yen Architect Fuji Electric Architects and Gain on Investment of Engineering Inc. (New construction Deposits and renovation) 5,931,026 yen SHIMIZU CORPORATION (New Builder Construction), SHIMIZU CORPORATION & KAJIMA Capital Expenditure 11,265,833 yen CORPORATION (Renovation) Structural Strength Calculator Fuji Electric Architects and Engineering Inc. (New construction Net Profit 295,265,534 yen and renovation) Inspection Agency Building Official (Chiyoda-ku) Cap Rate 5.2 % PML (Assessor) 7.48 % (Sompo Japan Nipponkoa Risk Management Inc.) Value by DCF method 5,610,000,000 yen Collateral Collateralized Rent Overview (as of March 31, 2013) Discount Rate 5.0 % Number of Tenants 1 Terminal Cap Rate 5.4 % Major Tenant Fuji Electric Co., Ltd. Value by Cost Approach 5,530,000,000 yen Monthly Rental Income (Note 5) Land 78.9 % Deposit (Note 5) Property 21.1 % Leasable Space Leased Space Occupancy 100 % Property Management Company (expected) Master Lease Company (expected) Assumed NOI (NOI yield) (Note 6) 6,250.53 sqm 6,250.53 sqm To be determined To be determined 315 million yen (5.7 %) 4
Special Items (Note 1) A part of the exterior wall of the property crosses the border toward its neighbor to the southeast. A memorandum of understanding exists which agrees to rectify the status of encroachment when the exterior wall is rebuilt in the future. (Note 2) Part of a granite rock and a door installed in the property crosses the border toward the neighbor to the north. A memorandum of understanding exists which agrees to rectify the status of encroachment when the rock is relocated in the future. (Note 4) The zoning authorities allowed the coverage ratio to be increased to 100% owing to the building s fire-resistant structure located in a fire prevention zone. (Note 5) The lessor has not provided consent for disclosure of Monthly Rental Income and the Deposit. (Note 6) Annualized by dividing the actual figures of the past six months (from September 2012 to February 2013) with the number of operating days, and multiplying by 365. 5
Asset Type (2) Ichigo Sakaisuji Honmachi Building Asset Overview Trust beneficiary rights in real estate (juekiken) Appraiser Appraisal Overview Daiwa Real Estate Appraisal Co., Ltd. Trustee Resona Bank, Limited. Value 2,000,000,000 yen Period of Trust Contract March 1, 2013 February 28, 2023 Date March 1, 2013 Location 1-6-16, Honmachi, Chuo-ku, Osaka-shi, Value by Direct Capitalization Osaka Method 2,000,000,000 yen Property Right Freehold Income 176,472,692 yen Land Building Architect Builder Size 734.15 sqm Obtainable Rent Income 164,446,560 yen Zoning Commercial Other Income 21,533,326 yen Coverage Ratio / Floor Area Ratio 80% / 800% Amount Equivalent to Loss on Vacant Space 9,507,194 yen Property Right Freehold Expenses 67,599,797 yen Zoning Office, car park Administrative and Maintenance Expenses 23,511,705 yen Structure S B1F/10F Taxes 20,097,900 yen Total Floor Area 5,456.84 sqm Other Expenses 23,990,192 yen Construction Date March 6, 2009 Net Operating Income (NOI) 108,872,895 yen Structural Strength Calculator Nomura Real Estate Development Co., Ltd. Nomura Construction Industrial Co., Ltd. Nomura Real Estate Development Co., Ltd. Gain on Investment of Deposits Capital Expenditure Cap Rate 2,642,617 yen 3,629,417 yen 107,886,095 yen Inspection Agency The Building Center of Japan Value by DCF method 5.4 % PML (Assessor) 12.40 % (Sompo Japan Nipponkoa Risk Management Inc.) Value by DCF method 2,000,000,000 yen Collateral Collateralized Rent Overview (as of March 31, 2013) Discount Rate 5.2 % Number of Tenants 13 Terminal Cap Rate 5.6 % Monthly Rental Income 14,054 thousand yen Value by Cost Approach 2,320,000,000 yen Deposit 126,222 thousand yen Land 50.2 % Leasable Space 3,729.29 sqm Property 49.8 % Leased Space Occupancy 100 % Property Management Company (expected) Master Lease Company (expected) Assumed NOI (NOI yield) (Note 7) 3,729.29 sqm To be determined To be determined 123 million yen (6.4 %) Special Items None (Note 7) Annualized by dividing the actual figures of the past six months (from September 2012 to February 2013) with the number of operating days, and multiplying by 365. 6
Asset Type (3) Konami Sports Club Izumi Fuchu Asset Overview Trust beneficiary rights in real estate (juekiken) Appraiser Appraisal Overview Daiwa Real Estate Appraisal Co., Ltd. Trustee Resona Bank, Limited. Value 1,250,000,000 yen Period of Trust Contract March 26, 2012 March 27, 2023 Date March 1, 2013 Location 1-20-1, Fuchucho, Izumi-shi, Osaka Value by Direct Capitalization Method 1,250,000,000 yen Property Right Sectional Ownership (Land ratio 15.15 %) Income 126,000,000 yen Land Size 6,853.90 m2 Obtainable Rent Income 126,000,000 yen Zoning Commercial Other Income 0 yen Building Architect Coverage Ratio / Floor Area Ratio 80 % / 400 % Amount Equivalent to Loss on Vacant Space Property Right Sectional Ownership (43.53 %) Expenses 46,878,160 yen Zoning Sports Center, Machine Room Administrative and Maintenance Expenses 4,846,800 yen Structure SRC B1F/6F Taxes 12,145,900 yen Total Floor Area 10,885.80 sqm Other Expenses 29,885,460 yen Construction Date January 28, 2011 Net Operating Income (NOI) 79,121,840 yen Nishimatsu Construction Co., Ltd. Gain on Investment of Deposits 0 yen 630,000 yen Builder Nishimatsu Construction Co., Ltd. Capital Expenditure 0 yen Structural Strength Calculator Nishimatsu Construction Co., Ltd. Net Profit 79,751,840 yen Inspection Agency JAPAN ERI CO.,LTD. Cap Rate 6.4 % PML (Assessor) 13.82 % (Sompo Japan Nipponkoa Risk Management Inc.) Value by DCF method 1,250,000,000 yen Collateral Collateralized Rent Overview (as of March 31, 2013) Discount Rate 6.2 % Number of Tenants 1 Terminal Cap Rate 6.6 % Major Tenant Konami Sports & Life Co., Ltd. Value by Cost Approach 1,190,000,000 yen Monthly Rental Income (Note 8) Land 27.0 % Deposit (Note 8) Property 73.0 % Leasable Space Leased Space Occupancy 100 % Property Management Company (expected) Master Lease Company (expected) Assumed NOI (NOI yield) (Note 9) 3,733.68 sqm 3,733.68 sqm To be determined To be determined 78 million yen (6.5 %) Special Items The asset is a sectional ownership of 43.53 % of the total building (3,733.68 sqm / 8,576.49 sqm). In addition, there are three buildings on the same lot. The sectional ownership for the land is 15.15 % of the total area. The number of owners in this building is thirteen. 7
(Note 8) The lessor has not provided consent for disclosure of Monthly Rental Income and the Deposit. (Note 9) Annualized by dividing the actual figures of the past six months (from September 2012 to February 2013) with the number of operating days, and multiplying by 365. 4. Seller Profile (1) Ichigo Akihabara North Building Name Suehirocho Holdings GK Address 1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo Managing Member: Ippan Shadan Hojin High Stage Representative Manager: Mariko Hirano 1. The acquisition, holding, and sale of trust beneficiary rights (juekiken) Principal Businesses 2. The acquisition, holding, and sale of real estate 3. Other businesses relating to the aforementioned businesses Capital 100,000 yen Establishment Date March 11, 2011 Equity Holder Ippan Shadan Hojin High Stage The Seller does not have any capital, personnel or business Relationship with the Ichigo relationship and is not a related party as defined in the REIT or Asset Manager Enforcement Ordinance of the Investment Trust and Investment Corporation Law (Note 10) (Note 10) Suehirocho Holdings GK is not a related party as defined in the Enforcement Ordinance of the Investment Trust and Investment Corporation Law. Nonetheless, the acquisition process has followed the internal rules of IRE for the following reasons: First, Ichigo Group Holdings Co. Ltd., the 100 % shareholder of Ichigo Real Estate Investment Advisors Co., Ltd. (Ichigo REIT s asset manager, IRE ), is a related party as defined in accordance with the internal rules of IRE and holds more than half of the equity in Suehirocho Holdings GK. Second, Ichigo Estate Co., Ltd., a related party as defined in the Enforcement Ordinance of the Investment Trust and Investment Corporation Law, is providing asset management advisory services. In addition, Ichigo REIT has obtained a second opinion regarding the property s appraisal and confirmed its propriety. 8
(2) Ichigo Sakaisuji Honmachi Building Name Kansai Holdings GK Address 1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo Managing Member: Ippan Shadan Hojin High Stage Representative Manager: Mariko Hirano 1. The acquisition, holding, and sale of trust beneficiary rights (juekiken) Principal Businesses 2. The acquisition, holding, and sale of real estate 3. Other businesses relating to the aforementioned businesses Capital 100,000 yen Establishment Date January 30, 2013 Equity Holder Ippan Shadan Hojin High Stage The Seller does not have any capital, personnel, or Relationship with the Ichigo business relationship and is not a related party as defined in REIT or Asset Manager the Enforcement Ordinance of the Investment Trust and Investment Corporation Law (Note 11) (Note 11) Kansai Holdings GK is not a related party as defined in the Enforcement Ordinance of the Investment Trust and Investment Corporation Law. Nonetheless, the acquisition process has followed the internal rules of IRE for the following reasons: First, Ichigo Group Holdings Co. Ltd., the 100 % shareholder of Ichigo Real Estate Investment Advisors Co., Ltd. (Ichigo REIT s asset manager, IRE ), is a related party as defined in accordance with the internal rules of IRE and holds more than half of the equity in Kansai Holdings GK. Second, Ichigo Estate Co., Ltd., a related party as defined in the Enforcement Ordinance of the Investment Trust and Investment Corporation Law, is providing asset management advisory services. In addition, Ichigo REIT has obtained a second opinion regarding the property s appraisal and confirmed its propriety. (3) Konami Sports Club Izumi Fuchu Name Ginza Holdings GK Address 1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo Managing Member: Ippan Shadan Hojin VSL Representative Manager: Mariko Hirano 1. The acquisition, holding, and sale of trust beneficiary rights (juekiken) Principal Businesses 2. The acquisition, holding, and sale of real estate 3. Other businesses relating to the aforementioned businesses Capital 100,000 yen Establishment Date January 25, 2013 Equity Holder Ippan Shadan Hojin VSL The Seller does not have any capital, personnel, or Relationship with the Ichigo business relationship and is not a related party as defined in REIT or Asset Manager the Enforcement Ordinance of the Investment Trust and Investment Corporation Law (Note 12) (Note 12) Ginza Holdings GK is not a related party as defined in the Enforcement Ordinance of the Investment Trust and Investment Corporation Law. Nonetheless, the acquisition process has followed the internal rules of IRE for 9
5. Ownership Overview the following reasons: First, Ichigo Group Holdings Co. Ltd., the 100 % shareholder of Ichigo Real Estate Investment Advisors Co., Ltd. (Ichigo REIT s asset manager, IRE ), is a related party as defined in accordance with the internal rules of IRE and holds more than half of the equity in Ginza Holdings GK. Second, Ichigo Estate Co., Ltd., a related party as defined in the Enforcement Ordinance of the Investment Trust and Investment Corporation Law, is providing asset management advisory services. In addition, Ichigo REIT has obtained a second opinion regarding the property s appraisal and confirmed its propriety. (1) Ichigo Akihabara North Building Overview Current Owner (Seller) Previous Owner Name Suehirocho Holdings GK Party with no particular interest Relationship with Party having Particular Vested Interest Acquisition Background, Reasons Related Party as defined in the internal rules of IRE For investment purpose Acquisition Price Omitted due to the holding period exceeding 1 year Acquisition Date March 30, 2011 (2) Ichigo Sakaisuji Honmachi Building Overview Current Owner (Seller) Previous Owner Name Kansai Holdings GK Party with no particular interest Relationship with Party having Particular Vested Interest Acquisition Background, Reasons Acquisition Price Related Party as defined in the internal rules of IRE For investment purpose 1,860 million yen (excluding acquisition costs and consumption tax) Acquisition Date March 1, 2013 10
(3) Konami Sports Club Izumi Fuchu Overview Current Owner (Seller) Previous Owner Name Ginza Holdings GK Party with no particular interest Relationship with Party having Particular Vested Interest Acquisition Background, Reasons 6. Broker Profile N/A Acquisition Price Related Party as defined in the internal rules of IRE For investment purpose 1,044 million yen (excluding acquisition costs and consumption tax) Acquisition Date March 28, 2013 7. Future Outlook Please refer to today s release Revision of Earnings and Dividend Forecast for the April 2013 Fiscal Period and Earnings and Dividend Forecast for the October 2013 Fiscal Period. Website of Ichigo REIT: www.ichigo-reit.co.jp/english 11
Property Photos and Location Map (1) Ichigo Akihabara North Building (2) Ichigo Sakaisuji Honmachi Building Ichigo Sakaisuji Honmachi Building Honmachi St. Chuo Line Sakaisuji Honmachi St. Midosuji Line Sakaisuji Line 12
(3) Konami Sports Club Izumi Fuchu 26 JR Hanwa Line Izumi Fuchu St. 480 Izumi Fuchu Post Office Konami Sports Club Izumi Fuchu Izumi Fuchu City Hall 30 Portfolio Reference Information 1. Post-Acquisition Portfolio Summary Before Acquisition (A) After Acquisition (B) Difference (B-A) Occupancy 95.2 % (Note 13) 95.3% +0.1% Average Building Age (as of June 3, 2013) 21.3 years 20.5 years - 0.8 years Diversification by Area (Tokyo Metropolitan Area/Other Areas) (Note 14) (as of June 3, 2013) 75.2% / 24.8% 74.3% / 25.7% -0.9% /+0.9% (Note 13) Flash Data as of March 31, 2013. (Note 14) Tokyo Metropolitan Area refers to Central Tokyo and Tokyo Metropolitan Area. Other Areas refers to Four Major Regional Cities and Other Regional Cities. 13
2. Post-Acquisition Portfolio Assets No. Property Area Acquisition Price (mm yen) (Note 15) % of Portfolio (Note 16) O-01 COI Shinbashi Building Central Tokyo 6,110 5.4% O-02 COI Nishisando Building Central Tokyo 3,254 2.9% O-03 MTC Building Central Tokyo 2,740 2.4% O-04 COI Nanpeidai Building Central Tokyo 1,920 1.7% O-05 Joware Hanzomon Central Tokyo 1,550 1.4% O-06 COI Hijirizaka Building Central Tokyo 1,200 1.1% O-07 COI Shibuya Kamiyamacho Building Central Tokyo 1,505 1.3% O-08 COI Akasaka 5 Chome Building Central Tokyo 735 0.7% O-09 COI Shibazonobashi Building Central Tokyo 1,100 1.0% O-10 COI Ebisu Nishi Building Central Tokyo 1,917 1.7% O-11 COI Ginza 612 Central Tokyo 1,773 1.6% O-12 COI Uchikanda Building Central Tokyo 1,140 1.0% O-13 COI Kudan-Minami Building Central Tokyo 387 0.3% O-14 COI Yotsuya 4 Chome Building Central Tokyo 550 0.5% O-15 COI Akasaka Tameike Building Central Tokyo 580 0.5% O-16 DSM Jimbocho Building Central Tokyo 1,820 1.6% O-17 DSM Nihonbashi Kakigaracho Building Central Tokyo 1,150 1.0% O-18 COI Kudan 2 Chome Building Central Tokyo 763 0.7% O-19 COI Kudan 3 Chome Building Central Tokyo 844 0.7% O-20 COI Gotanda Building Central Tokyo 5,060 4.5% O-21 Benex S-2 Tokyo Metropolitan Area 1,816 1.6% O-22 COI Minami-Ikebukuro Building Tokyo Metropolitan Area 1,460 1.3% O-23 Technos Nakano Building Tokyo Metropolitan Area 764 0.7% O-24 COI Eitai Building Tokyo Metropolitan Area 1,490 1.3% O-25 COI Yokosuka Bayside Building Tokyo Metropolitan Area 971 0.9% O-26 Chitose Building Tokyo Metropolitan Area 2,030 1.8% O-27 Route Ikebukuro Building Tokyo Metropolitan Area 639 0.6% O-28 Nishi-Gotanda Access Central Tokyo 765 0.7% O-29 TK Kichijoji Building Tokyo Metropolitan Area 2,160 1.9% O-30 Ibaraki Kowa Building Other Regional Cities 604 0.5% O-33 COI Mei-Eki Building Four Major Regional Cities 837 0.7% O-34 COI Nagoya Plaza Building Four Major Regional Cities 4,705 4.2% O-35 COI Sendai Chuo Building Other Regional Cities 510 0.5% O-37 CRD Marunouchi Four Major Regional Cities 6,710 5.9% O-38 Toyamaeki Nishi Building Other Regional Cities 1,650 1.5% O-39 Daihyaku Mirai-Shinkin Building Other Regional Cities 1,100 1.0% O-40 Kearney Place Saga Other Regional Cities 659 0.6% O-42 COI Takamatsu Building Other Regional Cities 3,010 2.7% O-44 Akita Sanno 21 Building Other Regional Cities 560 0.5% O-46 M s SQUARE Central Tokyo 2,130 1.9% 14
O-47 Ichigo Akihabara North Building Central Tokyo 5,500 4.9% O-48 Ichigo Sakaisuji Honmachi Building Four Major Regional Cities 1,940 1.7% Subtotal - Office (42 Properties) 78,108 69.1% R-01 ForeCity Roppongi Central Tokyo 1,730 1.5% R-02 ForeCity Azabujuban Central Tokyo 1,140 1.0% R-03 ForeCity Azabujuban No.2 Central Tokyo 1,250 1.1% R-04 Bureau Takanawadai Central Tokyo 1,360 1.2% R-05 ForeCity Shirokanedai Central Tokyo 824 0.7% R-06 B-Site Hamamatsucho Central Tokyo 701 0.6% R-07 ForeCity Akihabara Central Tokyo 2,520 2.2% R-08 Sweet One Court Central Tokyo 786 0.7% R-09 B-site Ginza East Central Tokyo 946 0.8% R-10 ForeCity Sasazuka Central Tokyo 1,050 0.9% R-11 Gran Presso Kawadacho Central Tokyo 592 0.5% R-12 ForeCity Sakurashinmachi Tokyo Metropolitan Area 932 0.8% R-13 ForeCity Shinkamada Tokyo Metropolitan Area 1,040 0.9% R-14 ForeCity Nakaochiai Central Tokyo 435 0.4% R-15 ForeCity Tomigaya Central Tokyo 1,341 1.2% R-16 ForeCity Ryogoku Tokyo Metropolitan Area 1,080 1.0% R-17 ForeCity Toyosu Tokyo Metropolitan Area 1,349 1.2% R-18 ForeCity Nishihonmachi Four Major Regional Cities 927 0.8% Subtotal - Residence (18 Properties) 20,005 17.7% Z-01 Falcon Shinsaibashi Building Four Major Regional Cities 3,410 3.0% Z-02 Fiesta Shibuya Central Tokyo 1,970 1.7% Z-03 Burc Omori Tokyo Metropolitan Area 3,218 2.8% Z-04 Pagoda Asakusa Tokyo Metropolitan Area 1,640 1.5% Z-05 Regalo Building Tokyo Metropolitan Area 1,310 1.2% Z-06 Lespoir 296 Tokyo Metropolitan Area 903 0.8% Z-07 El Centro Sapporo Four Major Regional Cities 558 0.5% Z-08 Daimyo Balcony Four Major Regional Cities 638 0.6% Z-09 Konami Sports Club Izumi Fuchu Other Regional Cities 1,210 1.1% Subtotal - Others (9 Properties) 14,857 13.2% Total 112,970 100.0% (Note 15) Acquisition Price is normally either the actual acquisition price (excluding consumption tax) or the acquisition price (excluding consumption tax) as described in the sales and purchase agreement of trust beneficiary interest. Nonetheless, 39 assets from O-01to O-44 and 7 assets from Z-02 to Z-08 are listed with the appraisal value as of October 31, 2011 to reflect acquisition via a REIT merger at that time. (Note 16) % of Portfolio is the Acquisition Price as a percentage of the Total Acquisition Price and rounded to the nearest second decimal place. 15